MCOE seeks remedies' for school district's financial woes

WILLITS - The Willits Unified School District's board of trustees will hold its last regular meeting of the year December 5. One or two special meetings also may be scheduled before 2013 to work on the financial crisis, but that depends on what the district office hears from the Mendocino County Office of Education and county Superintendent of Schools Paul Tichinin.

Tichinin has said his office is working on finding "remedies and solutions" for the Willits district, but due to the Thanksgiving holiday, those recommendations are still forthcoming. The county office is involved because, if the Willits district can't repay the nearly $5 million payment on a bond anticipation note (BAN) due on July 2014, the district's general fund will be at risk, and the county office is required by law to do what it can to prevent any district's fiscal insolvency.

A report by financial advisor Lori Raineri, president of Government Financial Strategies, who was hired by MCOE to review the district's bond plan, shows the district is able to issue between $1.425 million and $1.65 million in additional bonds to help pay the BAN loan. This assumes "application of unspent funds on hand," i.e., the use of the estimated $3.7 million that was intended to be spent on new science buildings at WHS and Baechtel Grove Elementary School. Raineri said these were not recommendations, but "options available to consider."

Interim Superintendent Debra Pearson said she has asked Facilities Director Wayne Bashore to "run the numbers" on how much would be needed to button up the fenced-in "hole" in the middle of the WHS campus where the science buildings were to be built. No estimate for that work is yet available.

Both Pearson and Bashore told The Willits News there was hope the estimated $3.7 million left might end up increasing a bit. "I'd say, yes, without a doubt," Bashore said.

Bashore had other funds built in to his budget in addition to the $3.7 million construction contract monies that will be freed up if the Phase 2 science buildings do not go forward. These include funds for testing by the Willits office of SHN Consulting Engineers & Geologists and for the inspector of record for the science building projects.

Bashore also said Clark & Sullivan has completed contract work at WHS on the CTE (Career and Technical Education) building, the wood shop and the metal shop, with "a couple nitpicky things that need to be straightened out."

On Tuesday, Bashore, Pearson, and representatives from NTD Architecture and Clark & Sullivan Construction did a walkthrough of the new media center, checking MEB (mechanical, electrical and plumbing), and that, too, had "a pretty minor" punch list of items to complete.

Bashore is talking with WHS Principal Gordon Oslund about having ribbon-cutting ceremonies for the new buildings at the high school next week.

The final contracted WHS project, the erection of the water tank, is due to start on December 3. "That should be done by December 17," Bashore said. "The foundation is done and the lines up to it."

Bashore also noted that, with the recent heavy rains: "There are absolutely no leaks in any of the roofs, and the solar panel structures for the kids to be under in the rains seem to be performing very well."

Bashore expected to be up and running on all the solar arrays district-wide on Wednesday this week, with the hook-up for the final solar installation at Brookside Elementary School scheduled for that day.

According to the 2012 annual report from the Citizens' Bond Oversight Committee, a total of $13,907,054 in school bonds has been issued since Willits Unified School District voters authorized Measure B in June 2010. Another $4.97 million was borrowed via the bond anticipation note, backed by the hope of future bond sales.

That's a total of $18,877,054. Minus the costs to sell the bonds, that's $18,234,208.

Other revenue used for the construction program includes $156,477 in interest from the bond proceeds, $811,273 in developer fee revenue, and $6,210 in sales of old portable buildings, for a total program revenue and budget of $19,208,169.

The total budget for the installation of solar arrays at WHS, BGMS, Brookside, Blosser and the Willits Charter School was $3,701,219. The total budget for computer and technology improvements districtwide was $999,201.

The district office will be accepting applications through December 31 to fill the vacancy on the school board left by the resignation of Trustee Barbara Starr. Interviews and selection of the new member will be scheduled for a January 2013 meeting.

Persons wishing to submit questions for board members to consider during the interviews should do so by Monday, December 17.

Those interested in applying for the trustee's seat should call the office at 459-5314, ext. 1101, for more information.